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Question - Banko Inc. manufactures sporting goods. The following information applies to a machine purchased on January 1, Year 1:
Purchase price $90,800
Delivery cost 4,000
Installation charge 3,000
Estimated life 5 years
Estimated units 153,000
Salvage estimate $6,000
During Year 1, the machine produced 49,000 units and during Year 2, it produced 51,000 units.
Required - Determine the amount of depreciation expense for Year 1 and Year 2 using each of the following methods:
a Straight-line
b. Double-declining-balance
c. Units of production
Confirm that the combination of Twinkies and Pizzas you end up with will maximize your total utility by computing the total utility
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